The Myrtle Lunch sells coupon books that patrons may use later to purchase meals. Each coupon book sells for \(\$ 17\) and has a face value of \(\$ 20\). That is, each book can be used to purchase meals with menu prices of \(\$ 20\). On July 1, redeemable unused coupons with face value of \(\$ 1,500\) were outstanding. During July, 250 coupon books were sold; during August, 100; during September, 100. Cash receipts exclusive of coupons were \(\$ 1,200\) in July, \(\$ 1,300\) in August, and \(\$ 1,250\) in September. Coupons with a face value of \(\$ 2,700\) were redeemed by patrons during the 3 months.

a If the Myrtle Lunch had a net income of \(\$ 500\) for the quarter ending September 30, how large were expenses?

b What effect, if any, do the July, August, and September coupon sales and redemptions have on the right-hand side of the September 30 balance sheet?